Summary
A 58-year-old CEO of a defense contractor was denied a security clearance due to concerns under Guideline B (Foreign Influence), Guideline C (Foreign Preference), and Guideline F (Financial Considerations). The applicant possessed dual citizenship with Latvia and a current Latvian passport, which he used to assert title to 300 acres of ancestral land in Latvia. These actions, including the exercise of dual citizenship and the use of a foreign passport, raised disqualifying conditions related to foreign preference and influence.
The judge found that the applicant's application for and use of a Latvian passport, particularly to reclaim ancestral property, demonstrated a preference for his Latvian citizenship over his U.S. citizenship. This was further compounded by his failure to renounce his Latvian citizenship or surrender his passport, as required by the "Money Memo" for clearance approval.
The substantial value of the land in Latvia and the applicant's financial interests there were deemed to create unacceptable risks of foreign influence, potentially making him vulnerable to coercion or exploitation. Despite a mitigating condition being applied, the applicant's actions and financial ties to Latvia ultimately led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant's application for a Latvian passport indicated a preference for foreign citizenship over U.S. citizenship.
- The applicant failed to comply with the provisions of the 'Money Memo,' which required the surrender of his foreign passport for clearance approval.
- The substantial value of the ancestral land in Latvia posed unacceptable risks of foreign influence.
Conditions Referenced
- E2.A3.1.2.1raisedExercise of Dual Citizenship
- E2.A3.1.2.2raisedPossession And/or Use of a Foreign Passport
- E2.A2.1.2.8raisedSubstantial Financial Interest in a Foreign Country
- E2.A3.1.3.4rejectedWillingness to Renounce Dual CitizenshipThe applicant's conditional willingness to renounce his foreign citizenship was not sufficient as he had not taken definitive action.
Key Rule Quoted
“The Government has a compelling interest in ensuring those entrusted with this Nation's secrets will make decisions free of concerns for the foreign country of which they may also be a citizen.”
Procedural Posture
- SOR issuedApr 23, 2002
- Answer filedMay 6, 2002Unresponsive Answer submitted.
- Hearing heldDec 18, 2002Hearing rescheduled from November 20, 2002.
- Decision dateJan 7, 2003
Cite For
- Denial of Security Clearance Due to Foreign Preference Under Guideline C
- Impact of Foreign Financial Interests on Security Clearance Under Guideline B
- Conditional Willingness to Renounce Foreign Citizenship Insufficient for Mitigation Under Guideline C